FDIC to centralize supervision, resolution of certain large banks, complex FIs under one office

Supervision and resolution activities for banks with more than $100 billion in assets and for which the federal bank deposit insurer is not the primary federal regulator will be centralized under a new Division of Complex Institution Supervision and Resolution (CISR) that will begin operating July 21, the agency said Thursday.

The Federal Deposit Insurance Corp. (FDIC) said this new office will be responsible for planning for and executing the agency’s resolution mandates for these institutions, “as well as for other financial companies if called upon to protect U.S. financial stability.” It said these activities are currently divided into three separate areas of the agency.

“Centralizing the FDIC’s expertise of large, complex financial institutions into a single division within the Agency will enable us to take a more holistic approach to the supervision and resolution of these institutions and the unique challenges they present,” according to a statement in Thursday’s release by FDIC Chairman Jelena McWilliams.

The agency said Rick Delfin, currently director of the FDIC Office of Complex Financial Institutions, will head CISR. John Conneely, the FDIC’s regional director for Chicago, will serve as the division’s acting senior deputy director to assist with the transition.

The FDIC said this change has no impact on the agency’s staffing levels or overall operating budget.

FDIC to Centralize Key Aspects of Its Large, Complex Financial Institution Activities